RAIL INDUSTRY
GOP Urges Biden to Prevent Freight Strike
As the September 16, 2022 midnight (12:01AM) looms, hectic political activities ramped up to prevent a catastrophic strike. On September 14, 2022, Sen. John Cornyn joined other GOP Senators to call for President Joe Biden to take whatever measures possible to ward off a strike. 12 unions are in intense negotiations with BNSF, Union Pacific, CSX, Kansas City Southern, Norfolk Southern and U.S. operation of Canadian National. A pair of GOP Senators are mulling to introduce steps for Congress to intervene in case of a possible rail strike. The workers are frustrated, according to the unions, over not only salaries and compensation, but also due to inflexible work conditions that force workers to skip regular medical care because they are afraid of getting punished. Amtrack announced suspension of services in Texas and other states as its trains use the freight rail tracks.
Rail Strike Averted after White House Involvement in Intense Negotiation
Giving a reprieve to the White House, unions and management of rail companies reached a tentative agreement in the wee hours of September 15, 2022 after a marathon 20-hour negotiation, thus averting a damaging strike. Under the proposed agreement, which is to be ratified by rank-and-file employees, workers are going to get an average of 24% boost in the wage over the five-year length of the contract. The contract will be retroactive to 2020. In addition to 24% boost in the wage, workers will also receive an average of $5,000 in bonus.
Another huge gain for workers is unpaid time off for the workers to make doctor's appointment or get medical care without being punished by the management. This was a point of contention between the management and unions.
President Joe Biden, who has been relieved because of a hefty cost of $2 billion a day to the economy has been averted at the last minute, lauded both railroad management and unions for rising over their own interests to uphold the national interest.
Congress to Impose the Agreement Reached in September
After rank-and-file members of the four of 12 railroad unions rejected the agreement reached in mid-September 2022 between the railroad companies and union negotiators, there was a general nervousness as any strike could be a potential crippling factor for the nation's economy. U.S. Chamber of Commerce has asked the Congress to intervene as a rail strike will have a catastrophic effect on the already strained supply chain ecosystem with a potential of $2 billion daily loss for the nation's economy. House of Representatives on November 30, 2022 voted 290-137 to pass a measure that would bind the labor and management to the agreement signed by negotiators from railroad companies and the unions in mid-September 2022, but subsequently rejected by some of the 12 unions. President Joe Biden asked the Senate to pass the measure swiftly as failure to do so would hurt "our ability to move food to tables, and our ability to remove hazardous waste from gasoline refineries". Although the agreement gives the workers a 24% pay raise, $5,000 bonus and an additional paid day of leave, the agreement doesn't have any paid sick day provision for workers, a key sticking point. Many workers are livid because of lack of paid sick leave provision. To address that, Democrats in the House introduced a second measure to add seven paid sick days, and it was passed by 221-207 votes. Republicans criticized the second measure as an endgame for Congress to insert in the benefit negotiation between organized labor and employers. To have paid sick leave to be part of the agreement, Senate has to pass both the bills.
Senate Passes the Binding Agreement to Avoid a Crippling Rail Strike
As the deadline for a December 9, 2022, rail strike is looming, Senate rushed to pass a measure that would bind the workers and railroad companies to a contract agreed in mid-September 2022. The measure was passed by a strong bipartisan vote of 80-15. Senate held three votes during the day. First vote was on a resolution introduced by Sen. Dan Young, Alaska, that would send the parties to negotiating table for a new agreement. The resolution was defeated by 70-25 votes. A second vote was held for a measure to add seven paid sick days to the contract. Speaker Nancy Pelosi had held a vote on that measure a day earlier in the House. The Senate failed to pass the 60-vote threshold as the measure received 52 votes and 43 Senators objected. The final vote was on imposing the contract that was negotiated in mid-September 2022 and it received the broadest support from the Senators. Railroad companies were reluctant to give paid sick leaves as they pointed that, in earlier talks, the unions had foregone the paid sick leaves for higher pay scales and a strong short-term disability benefits package. The measure now goes to President Joe Biden's desk.
********* NORFOLK SOUTHERN TRAIN DERAILMENT IN EAST PALESTINE **********
Norfolk Freight Rail Derailment Creates Disaster near Ohio-PA Border
A Norfolk Southern freight car derailed on February 3, 2023 on the outskirt of the Ohio village of East Palestine near Pennsylvania border. Three dozens freight cars, including 11 with hazardous materials, derailed, billowing thick smoke. Residents of East Palestine were evacuated because of the water and air in and around the village of 4,000 people were polluted. As the risk of explosions neared, authorities vented five cars, releasing and burning toxic vinyl chloride. On February 21, 2023, EPA Administrator Michael Regan ordered Norfolk Southern to clean the derailment site. Norfolk CEO Alan Shaw promised all-hands-on-deck response to clean up the site and help the town go through restoration process.
